Increasing demand for therapeutic cannabis from an aging population and changes in consumer preferences toward innovative recreational cannabis products have been driving the cannabis industry’s growth. The legal cannabis market is expected to reach…
$34.91 billion by 2025, registering a 21.39% CAGR.
Cannabis stocks bounced back last week on hopes sprung by a reported Republican-led legalization effort. A report by Marijuana Moment stated that cannabis would be treated similar to alcohol, and raw cannabis would be considered as an agricultural commodity regulated by the U.S. Department of Agriculture (USDA). Both U.S. and Canadian cannabis stocks have skyrocketed on legalization hopes. Indeed, investors’ interest in the cannabis industry is evidenced by the AdvisorShares Trust – AdvisorShares Pure Cannabis ETF’s (YOLO) 17.5% returns over the past year.
Cannabis stocks Sundial Growers Inc. (SNDL – Get Rating), Aurora Cannabis Inc. (ACB – Get Rating), Endo International plc (ENDP – Get Rating), and HEXO Corp. (HEXO – Get Rating) spiked more than 9% in price last week. So, we think these stocks could be good additions to one’s watchlist.
Incorporated in 2006, SNDL is a Calgary, Canada-based cannabis producer. The company produces and distributes adult-use cannabis products, including inhalable products, flowers, pre-rolls, and vapes. Also, SNDL, through its joint venture SunStream Bancorp Inc. offers growth capital and a strategic support platform in the global cannabis sector. The company markets its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands.
Last month, SNDL acquired Alcanna Inc., a Canadian private liquor retailer. With this acquisition, SNDL should receive stable cash flow and strengthen its position in the Canadian market. Also, the company believes that Alcanna’s shareholders should participate in and help create SNDL’s future
SNDL’s net revenue under the Cannabis segment for the third quarter ended September 30, 2021, increased 12% year-over-year to CAD14.4 million ($11.47 million). The company’s net earnings came in at CAD11.3 million ($9 million), compared to a CAD71.4 million ($56.86 million) net loss in the prior-year quarter. Its adjusted EBITDA amounted to CAD10.5 million ($8.36 million), compared to an adjusted EBITDA loss of CAD4.4 million ($3.5 million) in the third quarter of 2020. Also, the company’s gross margin under the Cannabis segments came in at CAD1.8 million ($1.43 million).
Analysts expect SNDL’s revenue to increase 380.9% year-over-year to $211.21 million for its fiscal 2022. Its EPS is expected to grow 91.1% in the current year and 100% next year. The stock has surged 224.4% in price over the past year and 43.1% over the past five trading days.
Headquartered in Edmonton, Canada, ACB is a medical cannabis company that produces various strains of dried cannabis, cannabis oil and capsules, and topical kits for medical patients. The company markets its products under the Aurora, Aurora Drift, San Rafael ’71, Daily Special, MedReleaf, CanniMed, Whistler, Reliva, and KG7 CBD brands. Also, ACB sells vaporizers and herb mills for using CanniMed herbal cannabis products.
This month, Aurora Nederland B.V, a subsidiary of ACB, has agreed to invest in an equity stake in Netherlands-based Growery B.V., one of the few license holders entitled to participate in the Controlled Cannabis Supply Chain Experiment. Through this investment, ACB can extend its establishment in the global recreational cannabis market and deliver high-quality cannabis to the new recreational program in the Netherlands.
During its fiscal first quarter, ended September 30, 2021, ACB’s total net revenue came in at…
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